New England Motor Freight Inc. announced it has filed for Chapter 11 bankruptcy and will shutter operations.
In a letter to employees posted online, President Thomas Connery wrote “the costs of running an asset-based trucking company have soared; with labor and benefits consuming an ever large portion of revenue."
He continued: “Add in the high cost of equipment, a severe industry shortage of drivers, ever increasing regulations and tolls, technology investments and the overall risk environment of our business.”
The privately held less-than-truckload carrier is based in Elizabeth, NJ. It was founded in 1977 and serves the northeastern United States and parts of Canada.
Its parent company is the Shevell Group, which ranks No. 80 on the 2019 Fleet Owner For-Hire 500 listing. The company’s vice president is Nancy Shevell, wife of Paul McCartney.
The company’s filing includes 10 subsidiaries, and was filed with the U.S. Bankruptcy Court for the District of New Jersey on Feb. 11.
“We have worked hard to explore options for New England Motor Freight, but the macro-economic factors confronting this industry are significant,” Vincent Colistra, chief restructuring officer, said in a statement.
NEMF said the bankruptcy filing “is the best mechanism to maximize the value of its assets for the benefit of its employees and various creditor constituencies.”